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units sold will require warranty service and that the average warranty claim will cost Malcom Appliances Inc. $300 Required: a) Prepare the journal entry to

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units sold will require warranty service and that the average warranty claim will cost Malcom Appliances Inc. $300 Required: a) Prepare the journal entry to recognize warranty expense and associated liability. Assume Malcom Appliances Inc. sells 30,000 appliances during 2021, for which no warranty work has yet been performed. (4 marks) Account Debit Credit b) Prepare the journal entry for warranty repairs by assuming that in January 2022, Malcom Appliances Inc. sends $11,000 cash and parts costing $22,500, to its dealers for warranty repairs. (4 marks) Account Debit Credit Part B. (4 Marks): Taylor Manufacturing the purchased, on account $200,000 of specialized consulting services from Jeffery Inc. on September 1, 2020. The amount owing to Jeffery is due in full on January 1, 2021. Taylor Manufacturing Inc. is unable to pay the account by the due date and negotiates an extension with a 10% note in lieu of the unpaid accounts payable. Required a) Prepare the journal entry to reflect the extension of the unpaid accounts payable. (2 marks) Account Debit Credit b) How much interest will be paid if Taylor Manufacturing Inc. repays the note on August 1, 2021. No journal entry required but answer to the nearest dollar. (2 marks) units sold will require warranty service and that the average warranty claim will cost Malcom Appliances Inc. $300 Required: a) Prepare the journal entry to recognize warranty expense and associated liability. Assume Malcom Appliances Inc. sells 30,000 appliances during 2021, for which no warranty work has yet been performed. (4 marks) Account Debit Credit b) Prepare the journal entry for warranty repairs by assuming that in January 2022, Malcom Appliances Inc. sends $11,000 cash and parts costing $22,500, to its dealers for warranty repairs. (4 marks) Account Debit Credit Part B. (4 Marks): Taylor Manufacturing the purchased, on account $200,000 of specialized consulting services from Jeffery Inc. on September 1, 2020. The amount owing to Jeffery is due in full on January 1, 2021. Taylor Manufacturing Inc. is unable to pay the account by the due date and negotiates an extension with a 10% note in lieu of the unpaid accounts payable. Required a) Prepare the journal entry to reflect the extension of the unpaid accounts payable. (2 marks) Account Debit Credit b) How much interest will be paid if Taylor Manufacturing Inc. repays the note on August 1, 2021. No journal entry required but answer to the nearest dollar. (2 marks)

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